When building portfolio, it is ok to deviate temporary from target allocation to pursue for attractive and undervalued stock. This temporary deviation may make the portfolio looks concentrate and undiversified. But if the other stock is fully valued or not cheap enough and this stock is so undervalue and attractive, it will be stupid not to buy more just because we want to keep our portfolio in a well diversified manner. Those deviation shall be adjusted back later by continuing inflow of investment or rebalancing.
Monday, November 26, 2012
Sunday, November 18, 2012
My first world vision trip
I am following world vision trip to Thailand Praiburng for child sponsor visit tomorrow. It will be a 4 day trip. I will be the official photographer. Never being official photographer, i am nervous and hopefully things will go well for me.
Don't know how the trip will be turn out, I am excited, for the people I will be met, scenery, things I see, experience, child sponsor and family, etc. I hope I will excited enough to let people feel my excitement and not feel the coldest side of me.
Don't know how the trip will be turn out, I am excited, for the people I will be met, scenery, things I see, experience, child sponsor and family, etc. I hope I will excited enough to let people feel my excitement and not feel the coldest side of me.
Thursday, November 15, 2012
快，准，狠
想要快速的成功，常常是必须孤注一掷的。
除了眼光的独到，知识了解一定要够，才有七分的把握，剩余的就要凭运气了。
分散虽然分散了风险，却不专注，给人不踏实的感觉。
太多了，难免顾此失彼，当心陷入一事无成的田地。
除了眼光的独到，知识了解一定要够，才有七分的把握，剩余的就要凭运气了。
分散虽然分散了风险，却不专注，给人不踏实的感觉。
太多了，难免顾此失彼，当心陷入一事无成的田地。
Wednesday, November 14, 2012
Blinded / Outdated
We need to always find cheaper and more effective solution. Sometimes we just lazy to do so, or no time? We stick to one product and thought it is the best forever. With the promotion and advertisement, we thought the product continue to be the best. But we don't realised that there are other product coming up competing at a much cheaper and effective way. In some way, we have been blinded.
I want to take an example of unit trust. Because I have been satisfied with my current agent, I don't think of finding other alternative agent or alternative unit trust company. Plus, I am naturally reluctant of listening to other sales man sell their unit trust. It will be more possible for me to listen to my friend. But a lot of time I am stubborn with my own decision and thought my choice of agent and company will serve me best. I have been blinded. Because I stop finding other alternative.
May be we can think of Sony? or may be Apple because Samsung is catching up? Or may be a good example of Intel and Microsoft which both willing to take big action to innovate and change their company direction to adapt to the Pad/mobile generation?
Things changed fast these days. A competitive product today may not be competitive product tomorrow. Unless the company keep humble and innovate to keep their leading position, even a top brand company can be replaced by second or third lier company.
I want to take an example of unit trust. Because I have been satisfied with my current agent, I don't think of finding other alternative agent or alternative unit trust company. Plus, I am naturally reluctant of listening to other sales man sell their unit trust. It will be more possible for me to listen to my friend. But a lot of time I am stubborn with my own decision and thought my choice of agent and company will serve me best. I have been blinded. Because I stop finding other alternative.
May be we can think of Sony? or may be Apple because Samsung is catching up? Or may be a good example of Intel and Microsoft which both willing to take big action to innovate and change their company direction to adapt to the Pad/mobile generation?
Things changed fast these days. A competitive product today may not be competitive product tomorrow. Unless the company keep humble and innovate to keep their leading position, even a top brand company can be replaced by second or third lier company.
Friday, November 9, 2012
Optimistic
Being a person, we need to be optimistic and hopeful about our future. The key word is our future, not the surrounding future. No matter how other people think of the future, or how other people think of your future, it is none of your business. You have to find your future and find opportunity to your future, and there is plenty of options around. You have to walk out a road.
Being an investor, optimistic is the most important character. No matter how bad the economy, no matter how bad your own country is, there is always a lot opportunities. There is a lot of opportunities where other people overlook, and a lot of opportunities less explored. What you need to have is you have to look a head a little far. You have to be able to see other investor/trader don't see. This mean that you have to always make prediction base on current trend and development, which is overlook by most people, and take opportunity/action on your prediction.
This is not so difficult actually. A lot of investors/traders are too afraid of following their own sense. They are comfortable following the crowd, which form the market basically. I will explain further below about the market.
Market is operate in a reasonably efficient environment where all the prices always reflect the currently available information. Market participant trade everyday to reflect their expectation of the value base on information publicly disclose. Their value discount in pessimistic market and overvalue in optimistic market. The important point is market trade on information disclose. The share price move base on information disclose. But long term investor don't trade often. Only short term trader trade often. Opportunistic investor trade often. For an efficient market, trading is the most important thing. If the market is dominated by long term investor who trade very seldom, the market will not be efficient. In this sense, long term investors are minority group. This group of people has a lot of opportunity to outperform the market. They are the odd.
Of course, you need to have the confident to your prediction, and bet. Again, your prediction must be overlook by the market.
Don't be affected by the market. Make your own decision and be really optimistic because of your prediction and bet. That is what optimistic is all about.
Being an investor, optimistic is the most important character. No matter how bad the economy, no matter how bad your own country is, there is always a lot opportunities. There is a lot of opportunities where other people overlook, and a lot of opportunities less explored. What you need to have is you have to look a head a little far. You have to be able to see other investor/trader don't see. This mean that you have to always make prediction base on current trend and development, which is overlook by most people, and take opportunity/action on your prediction.
This is not so difficult actually. A lot of investors/traders are too afraid of following their own sense. They are comfortable following the crowd, which form the market basically. I will explain further below about the market.
Market is operate in a reasonably efficient environment where all the prices always reflect the currently available information. Market participant trade everyday to reflect their expectation of the value base on information publicly disclose. Their value discount in pessimistic market and overvalue in optimistic market. The important point is market trade on information disclose. The share price move base on information disclose. But long term investor don't trade often. Only short term trader trade often. Opportunistic investor trade often. For an efficient market, trading is the most important thing. If the market is dominated by long term investor who trade very seldom, the market will not be efficient. In this sense, long term investors are minority group. This group of people has a lot of opportunity to outperform the market. They are the odd.
Of course, you need to have the confident to your prediction, and bet. Again, your prediction must be overlook by the market.
Don't be affected by the market. Make your own decision and be really optimistic because of your prediction and bet. That is what optimistic is all about.
Sunday, November 4, 2012
Vulnerability side of high dividend paying company's stock
In this low interest rate environment, it is normal for people chasing for higher yield investment instrument with comparative lower risk.
In this situation, mature industry which pay high dividend appear attractive. The business is stable and has lower risk. I think it is one of the main factor for their high valuation.
When people heavily benchmark stock dividend yield to risk free rate, interest rate risk become an important factor. Watch out when the interest rate start to rise. When that happen, those high dividend paying company's stocks will suddenly become vulnerable.
In this situation, mature industry which pay high dividend appear attractive. The business is stable and has lower risk. I think it is one of the main factor for their high valuation.
When people heavily benchmark stock dividend yield to risk free rate, interest rate risk become an important factor. Watch out when the interest rate start to rise. When that happen, those high dividend paying company's stocks will suddenly become vulnerable.
Thursday, November 1, 2012
November 2012
This November is expected to be exciting. America presidential election and China change of leadership. The 2 biggest economies in the world. Any policy change will definitely affect the world. Even I suspect there might not be any major change in policy in near term, market shall view it as a theme to speculate, to be optimistic or pessimistic about.
Subscribe to:
Posts (Atom)